1 Warren Buffett Stock to Buy Hand Over Fist in June
Warren Buffett is the incredibly successful CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). The stocks his company owns tend to receive plenty of extra attention from investors who want to mimic his investment approach (and match the level of returns Berkshire manages).
There's a dichotomy today in the energy sector, in which Buffett owns two very different energy stocks. Which of these energy stocks is the better option for your portfolio?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
What does Warren Buffett do?
Warren Buffett is the CEO of a company that is run more like a mutual fund than a business. In fact, the conglomerate owns around 200 companies if you include both controlled businesses and publicly traded stocks in the mix. The real key here, however, is that Buffett doesn't tend to get into the day-to-day operations of the businesses in which he's invested.
Like a mutual fund manager, Buffett buys companies when he thinks they are attractively priced. Then he lets the management team run them, only stepping in if asked or when there is a dire need for his input (notably poor performance, for example). Mostly, he just sits back and benefits from the long-term growth of the businesses in which Berkshire is invested.
Buffett's investment approach is important to understand if you are going to use his portfolio as a starting point for your own stock selections. But his penchant for owning stocks for the long term means the current list isn't necessarily filled with stocks you should buy today. That said, the energy sector is a little out of favor right now, so there are potential bargains to be had. Two potential examples are Occidental Petroleum (NYSE: OXY) and Chevron (NYSE: CVX).
Slow and steady is probably your best bet
Occidental Petroleum is an interesting story because Buffett helped the energy company outbid Chevron for Anadarko Petroleum a few years ago. That purchase ended up being a big stretch for Oxy, as it is more commonly known. When oil prices fell during the coronavirus pandemic, a highly leveraged balance sheet led Oxy to cut its dividend. The dividend is still below where it was prior to the cut. Oxy is very clearly focused on growing its business and has inked several more acquisitions now that its finances are in better shape. This is a stock that more aggressive investors will find attractive.
Chevron, on the other hand, is a rock in the normally turbulent energy seas. In 2020, it raised its dividend. During the Great Recession, it raised its dividend. During the dot-com crash, it raised its dividend. It has raised its dividend annually for 38 consecutive years. Oil and natural gas prices are incredibly volatile, but Chevron has built a business that can survive through the entire energy cycle while still rewarding investors with reliable dividends along the way.
There are two big foundational stories here. First, Chevron is one of the world's largest integrated energy companies. It has exposure to the entire energy value chain, allowing it to move its business around in ways that maximize long-term returns for shareholders. Second, it has a very strong balance sheet, which allows it to take on debt during downturns to support its business and dividend. When energy prices recover, as they always have before, it reduces leverage. It is the kind of energy company that even the most conservative investor can love.
Chevron has an attractive yield
Right now, the energy sector is a bit unloved on Wall Street because energy prices have been a little weak. That makes the sector an interesting one for investors to consider. Chevron is out of favor within the energy sector because of a difficult acquisition that it is trying to complete and because of its investments in Venezuela, which have become a bit of a political football. Neither issue is likely to derail the company over the long term. However, they have helped to push Chevron's yield up to around 5%. If you are a dividend investor looking at energy stocks, this Buffett pick is worth buying in June.
Should you invest $1,000 in Chevron right now?
Before you buy stock in Chevron, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chevron wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!*
Now, it's worth noting Stock Advisor 's total average return is996% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 9, 2025
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However, Chevron is one of the most ideally positioned of all integrated operators. It also oversees transmission pipelines, as well as chemical plants and refineries. If the spot price of crude oil declines, Chevron's cash flow from its midstream and downstream segments can pick up the slack. 6. Moody's: $12 billion (4.2% of invested assets) The third longest-tenured stock in Berkshire Hathaway's $283 billion investment portfolio is credit-rating agency Moody's (NYSE: MCO), which has been a continuous holding since it was spun off from Dun & Bradstreet on Sept. 30, 2000. It's also a stock that Buffett's company has gained more than 4,760% on, relative to its cost basis. What made Moody's such a phenomenal business for so long is its Investors Service segment, which encompasses credit ratings and risk analysis for public companies and governmental entities. More than a decade of historically low lending rates encouraged businesses and local, state, and federal governments to borrow, which in turn kept credit-rating agencies like Moody's busy. With interest rates meaningfully climbing since 2022, Moody's Analytics has come into focus and picked up the slack. This is the division that provides intelligence and analytical tools to help businesses navigate changing regulatory environments and assess risk. Occidental Petroleum is highly sensitive to changes in the spot price of crude oil. WTI Crude Oil Spot Price data by YCharts. 7. Occidental Petroleum: $11.5 billion (4.1% of invested assets) The seventh and final stock that, along with Apple, AmEx, Coca-Cola, BofA, Chevron, and Moody's, collectively helps to account for 72% of Warren Buffett's investment wagers at Berkshire Hathaway is integrated oil and gas company Occidental Petroleum (NYSE: OXY). The Oracle of Omaha has purchased almost 265 million shares of Occidental common stock since the beginning of 2022, which is worth about $11.5 billion, as of the closing bell on June 9, 2025. Though it's an integrated energy company like Chevron, Occidental Petroleum generates an outsized percentage of its net sales from its drilling operations. If the spot price of crude oil is rising, Occidental's operating cash flow will enjoy disproportional benefits, relative to other integrated operators. But the reciprocal is also true, with Occidental getting punished more than its peers if the price of oil declines. Another factor that makes Occidental Petroleum somewhat of an odd pick for Warren Buffett is its relatively debt-heavy balance sheet. While it did manage to reduce its long-term debt since the height of the pandemic, Occidental has far less financial flexibility than energy majors like Chevron. Should you invest $1,000 in Apple right now? 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Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Chevron, and Moody's. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
